Nigeria’s Soaring Rates Push Firms to Borrow Short-Term

Nigerian companies are increasingly opting to issue short-term debt rather than longer-term notes to avoid locking in high borrowing costs.

Companies issued 1.8 trillion naira ($1.2 billion) in debt maturing in less than a year in the 13 months through June, compared with just 197.3 billion naira raised in two- to seven-year tenors over the same period, data compiled by FMDQ, which tracks trading activity in the commercial hub, Lagos, shows.